CoinDesk Podcast Network Why Brazil’s CBDC Won’t Launch on a Blockchain
Sep 26, 2025
Ronaldo Lemos, an advisor to Brazil’s central bank on the Drex CBDC and founder of the Institute for Technology and Society of Rio, shares insights on Brazil's upcoming digital currency. He explains how Drex, a programmable digital real, will integrate with existing financial systems like PIX. Ronaldo distinguishes CBDCs from stablecoins and discusses measures to enhance user privacy, including the potential use of homomorphic encryption. He also addresses why the initial Drex pilot won't use blockchain, advocating for a thoughtful approach to future digital innovations.
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Drex Is Programmable Fiat
- Brazil's Drex aims to be a programmable central bank digital currency integrated with smart contract platforms.
- Ronaldo Lemos expects Drex to enable smart contracts and apps similar to PIX's ecosystem.
CBDC vs Stablecoin: Who's Liable
- CBDCs are public money backed by the central bank while stablecoins are private liabilities.
- Users care less about technical rails and more about valuable applications built on top.
Protect Privacy With Tech And Law
- Balance privacy and transparency through both legal and architectural measures for Drex.
- Explore advanced cryptography like homomorphic encryption to preserve user privacy at scale.